Making a balance between social life and finances in your 20s can be a daunting task. Add student loan payments, insurance, and rent and you’ll find yourself lost with personal financial planning.
However, balancing your finances shouldn’t be a tough task and shouldn’t take so much of your time. All you have to do is find the right strategy to manage it and be financially secure while staying ready for any unexpected expenses that may arise.
The first step many experts recommend is: Take inventory.
“Even before you decide what you want to do, or where you want to be in the future, get a really good sense of what your finances look like today,” said Shweta Lawande, a certified financial planner at Francis Financial.
One simple way to look at it is the 50-30-20 rule: Spend 50% of your income on needs, 30% on wants (fun), and save 20%. Consider how your math stacks up against that rule and see if you need to make some adjustments.
Lawande recommends organizing what you have in your checking and savings accounts (or any investment accounts) first.
